Computer Problems Plague the IRS on Tax Day … and Bigger Troubles May Lie Ahead

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It wasn’t a very happy Tax Day for the IRS, which announced it was “experiencing technical difficulties” with some computer systems and temporarily couldn’t accept returns from tax preparers, including big filers like TurboTax and H&R Block. Taxpayers won’t be penalized if their filing was affected by the glitch.

Former IRS Commissioner John Koskinen told The Wall Street Journal’s Richard Rubin that it was only a matter of time before such a failure occurred as the agency struggles with a reduced budget, smaller staff and antiquated technology. “The question was becoming not whether the system would just shut down one day, but when,” he said. “Each year, there have been more glitches that get handled so nobody sees them, but the system gets more rickety every year.”

But, as Bloomberg reports, the IRS has far bigger issues than just tech troubles and tax refunds.

“Pegged to Tuesday’s tax-filing deadline, Republican leaders scheduled a floor vote later this week on a bipartisan package to retool the agency,” Ben Steverman writes. “If the measure gains momentum, the IRS could face restructuring as it struggles to implement a once-in-a-generation overhaul of the U.S. tax code.”

That only makes it more likely that the confusion surrounding implementation and interpretation of the new GOP tax law will linger for months, or longer.

As editor in chief, Yuval Rosenberg oversees all aspects of The Fiscal Times' website and email newsletter. His writing has appeared in publications including BusinessWeek, CNBC.com, CNNMoney.com, Fast Company, Fortune, Newsweek, Money and Time.